Physical media will remain a reality for years to come.
Years for sure, decades no. Also Blu will be the last physical format.
Take a look at the reality of alternatives right now, specifically streaming. ISPs are pissed that companies like Netflix and YouTube are using a bulk of their bandwidth, so the connections are being throttled unless they shell out millions.
Really though, a short term technical problem. The ISPs want a piece of this soon to be massive pie of online video as they are saying they have to supply a lot of the kit so they deserve some of the profit.
Deals like this aren't because there is a problem with Netflix, they are because Netflix is going to be enormous, or enormouser. Look at amazon's strategy as well, while not good at making a margin they do know which way the wind is blowing.
Since about six months ago, I can no longer watch YouTube at 1080p without it buffering throughout. It used to never do that, but AT&T is reducing bandwidth.
I used to be able to watch Netflix in HD with no problem. Now I'm lucky if it goes beyond 480p.
As hard as it is to believe these technical problems will be resolved for 90% of people within the next decade.
Blu-ray will be around for a while. The only alternative is heavily compressed video with lossy audio, which would be a significant downgrade from Blu-ray.
Five years as a mainstream format I'd say..
And well, yes that's true. However you and I and those who have amassed large Blu collections are a small minority of the people who make up the home video market. Most people are buying a big TV for sports, which they get in HD from their provider, and watching movies either on-demand or on old DVDs.
Blu Ray sales are slowly dropping, in the UK at least catalogue releases are pretty rare now, and DVD sales have been in decline for almost a decade. Blu 3D has not taken off, and Blu 4K will be a non-starter.
Of course the kicker is, that the industry will now only get revenue from the streaming sites, as the physical media leaves the building. They will run in a tier from Cinema >> Premium Streaming >> Slightly Cheaper Streaming >> What we currently have on Netflix, I expect Netflix and co will get pricier over time so they can compete in that "just below premium" tier.